India is on the brink of finalizing a trade deal that holds the promise of substantial investments from a select group of European nations, paving the way for a potential $100 billion influx over a 15-year period. The European Free Trade Association (EFTA), consisting of Norway, Iceland, Liechtenstein, and Switzerland, has reportedly committed to this investment pact, marking a significant development in India’s economic landscape.
Sources familiar with the matter suggest that the proposed investments from EFTA countries could result in the creation of over 1 million jobs in India. The focus of these investments is expected to span both existing and new manufacturing projects, encompassing contributions from both state-sponsored entities and private enterprises.
Key aspects of the trade agreement include provisions for market access to specific agricultural projects and facilitating smoother mobility for Indian professionals to EFTA nations. While an official statement from the commerce ministry and EFTA is pending, the potential implications of this agreement on bilateral trade and economic cooperation are substantial.
Union Minister for Communications and Electronics and Information Technology, Ashwini Vaishnaw, revealed last month to Reuters that India is targeting an annual foreign direct investment (FDI) of $100 billion in the coming years. This aligns with India’s broader strategy to attract investments from diverse sources, with recent interest also coming from the United Arab Emirates, contemplating an investment of up to $50 billion in the country.
As India positions itself as an attractive destination for foreign investments, the potential trade deal with EFTA nations underscores the country’s commitment to fostering economic growth through strategic partnerships.
